Source: All England Reporter
Publisher Citation: [2002] All ER (D) 321 (Mar)
Neutral Citation: [2002] UKHL 12
Court: House of Lords
Judge:

Lord Slynn of Hadley, Lord Steyn, Lord Hoffmann, Lord Hutton and Lord Millett

Representation Romie Tager QC and Tony Oakley (instructed by Wallace and Partners) for the claimant.
  David Oliver QC and Sue Carr (instructed by Fairmays) for Y.
  Justin Fenwick QC (instructed by Goldsmiths) for L.
Judgment Dates: 21 March 2002

Catchwords

Trust and trustee - Constructive trust - Fraud - Knowing assistance in furtherance of dishonest breach of trust - Accessory liability - Test to be applied for determining dishonesty.

The Case

In order to determine whether a person had acted dishonestly and a finding of accessory liability made a combined test was to be applied. That test required that before there could be a finding of dishonesty it had to be established that the defendant's conduct was dishonest by the ordinary standards of reasonable and honest people and that he himself realised that by those standards his conduct was dishonest. Thus in equity a person could not escape a finding of dishonesty because he set his own standards of honesty and did not regard as dishonest what he knew would offend the normally accepted standards of honest conduct.

Practice Areas

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